International Journal of Advances in Social Sciences

Open Access Open Access  Restricted Access Subscription Access
Open Access Open Access Open Access  Restricted Access Restricted Access Subscription Access

Income Distribution Due to Diversified Livelihood Among Rural Households of Sikkim:An Impact Study


Affiliations
1 Dept. of Economics, Sikkim University, Gangtok, India
     

   Subscribe/Renew Journal


Income distribution in rural households throughout the world has been found through diversified form of livelihoods. A rural household has been seen as a diversified enterprise occupying diversified activities in both farm and nonfarm sectors. The extent of diversification differs among households and has differential outcome to the income distribution. Selecting 350 rural households randomly, from all four districts of Sikkim for the study purpose, this paper tries to make an inquiry of distribution of rural incomes owing to diversification of rural livelihoods. To study the problem as laid by the objective of this study, Simpson’s diversification index has been used and the extent of diversification has been measured to be 0.55. Similarly Gini coefficient has been used to calculate the inequality in income distribution and is found to be 0.378. Further decomposition of Gini inequality according to income source has been done and skilled nonfarm income as the major source of total rural income inequality has been identified. Results indicate that rural unskilled nonfarm income, self employment and business incomes have equalizing effects on total income inequality. The result indicates that despite the centrality of agriculture, rural households are engaged in other nonfarm activities for an alternative income sources.

Keywords

Rural, Sikkim, Livelihoods, Diversified, Households, Income, Gini Coefficient.
Subscription Login to verify subscription
User
Notifications
Font Size


  • Adams, R. (1999). Non-farm Income, inequality and land in rural Egypt. Washington D. C.: The World Bank.

  • Adepoju, A. O., and Oyewole, O. (2014). Rural Livelihood Diversification and Income Inequality in local Government area, Akinyele, Ibadan, Oyo State , Nigeria. Journal of Agricultural Sciences, 59(2), 175-186.

  • Adi, B. (2007). Determinants of Agricultural and Non-Agricultural Livelihood Strategies in Rural Communities: Evidence from Eastern Nigeria. The Journal of Developing Areas., 40(2), 93-109.

  • Ahmed, M. T., Bhandari, H., Gordoncillo, P. U., Quicoy, C. B., and Carnaje, G. P. (2015). Diversification of rural livelihoods in Bangladesh. Journal of Agricultural Economics and Rural Development, 2(2), 032-038.

  • Akaakohol, M. A., and Aye, G. C. (2014). Diversification and farm household welfare in Makurdi, Benue State, Nigeria. Development Studies Research: An Open Access Journal, 1(1), 168-175.

  • Amjad, R. (1998). Rural Employment Planning : Selected Lessions From The Asian Experience. Working Paper. ILO (ARTEP). New Delhi.

  • Awasthi, I. C. (2012). Livelihood Diversities in Mountain Economy: Constraints and Opportunities. New Delhi: Concept Publishing Company Pvt. LTD.

  • Barrett, B. C., Reardon, T., and Webb, P. (2001). Nonfarm Income Diversification and Household Livelihood Strategies in Rural Africa: Concepts, Dynamics, and Policy implications. Food policy, 26(4), 315-331.

  • Bhasin, V., and Bhasin, M. K. (1996). Sikkim Himalayas: Ecology and Resource Development. Journal of Human Ecology, 7(4), 265-299.

  • Bhattacharya, B. (1998). Sikkim: Land and People. New Delhi: Omsons Publications.

  • Brown, D. R., Stephens, E. C., Ouma, J. O., Murithi, F. M., and Barrett, C. B. (2006). Livelihood strategies in the rural Kenyan highlands. AFJARE, 1(1), 21-36.

  • Bryceson, D. F. (1999). African rural labour, income diversification and livelihood approaches: a long‐term development perspective. Review of African Political Economy, 26(80), 171-189.

  • Carswell, G. (2002). Livelihood Diversification: Increasing in Importance or increasingly recognized? Evidence from Southern Ethiopia. journal of International Development, 14, 789- 804.

  • Chakrabarti, A. (2010). A critical review of Agrarian Reforms in Sikkim. Economic and Political Weekly, XLV(5), 23-26.

  • Chakrabarti, S., and Kundu, A. (2009). Rural Non Farm economy: A note on the impact of Crop-Diversification and Land Conversion. Economic and Political Weekly, 44(12), 69-75.

  • Chambers, R., and Conway, G. R. (1991). Sustainable rural livelihoods: practical concepts for the 21st century. IDS Discussion Paper, 296.

  • Davis, B., Winters, P., Carletto, G., Covarrusbias, K., Quinones, E. J., Zezza, A., . . . Digiuseppe, S. (2009). A Cross- Country Comparison of Rural Income Generating Activities. World Development, 38(1), 48-63.

  • Dercon, S., and Krishnan, P. (1996). Income Portfolio in Rural Ethiopia and Tanzania: Choices and Constraints. The Journal of Development Studies 32(6), 850-875.

  • Ellis, F. (1998). Household strategies and rural livelihood diversification. The Journal of Development Studies, 35(1), 1.

  • Ellis, F. (2000a). The Determinants of Rural Livelihood Diversification in Developing Countries. Journal of Agricultural Economics, 51(2), 289-302.

  • Ellis, F. (2000b). Rural Livelihoods and Diversity in Developing Countries: Oxford University Press.

  • Fei, J. C. H., and Ranis, G. (1964). Development of the Labour Surplus Economy: Theories and Policies Irwin Homewood, III.

  • Gautam, Y., and Andersen, P. (2016). Rural livelihood diversification and household well-being: Insights from Humla, Nepal. Journal of Rural Studies, 44, 239-249.

  • Hussein, K., and Nelson, J. (1998). Sustainable Livelihood and Livelihood Diversification. IDS Working Paper 69. Working Paper. Institute of Development Studies. Brighton.

  • Hymer, S., and Resnick, S. (1969). A Model of an Agrarian Economy with Nonagricultural Activities. The American Economic Review, 59(4), 493-506.

  • Ijaiya, M. A., and Ajaiya, G. T. (2009). Income Diversification and Household well- being in Llorin Metropolis, Nigeria. International Journal of Business Management, Economics and Information Technology, 1(1), 1-12.

  • Iwasaki, E. (2015). Income Distribution in rural Egypt- A three Village case. Journal of African Studies and Development., 7(1), 15-30.

  • Jayne, T. S., Chamberlin, J., and Headey, D. D. (2014). Land pressures, the evolution of farming systems, and development strategies in Africa: A synthesis. Food Policy, 48, 1-17.

  • Khatun, D., and Roy, B. C. (2012). Rural Livelihood Diversification in West Bengal: Determinants and Constraints. Agricultural Economics Research Review, 25(1), 115-124.

  • Lerman, R., and Yitzhaki, S. (1985). Income inequality effects by Income sources: A new Approach and Application to the US. The Review of Economics and Statistics,, 67(151-156).

  • Lewis, A. (1954). Economic Development with Unlimited Supplies of Labour. Manchester School of Economies and Social Studies, 22, 131-191.

  • Mamgian, R. P. (2004). Employment, Migration and Livelihoods in the Hill Economy of Uttaranchal (PhD), Jawaharlal Nehru University, New Delhi.

  • Manjur, K., Amare, H., HaileMariam, G., and Tekle, L. (2014). Livelihood diversification strategies among men and women rural households: Evidences from two watershed of Northern Euthopia. Journal of Agricultural Economics and Development, 3(2), 017-025.

  • Mistri, R. (2013). An empirical study on nonfarm employment in the Darjeeling Districts of West Bengal. (M. Phil), University of North Bengal, Darjeeling.

  • Omilola, B. (2009). Rural Non-farm Income and Inequality in Nigeria. IFPRI Discussion paper 00899. International Food Policy Research Institute.

  • Pradhan, A. K. (2014). Impact of Common Property Forest Incomes on Rural Income Inequality, A Gini Decomposition Analysis. Journal of Resources ,Energy and Development., 11(1 and 2), 25-40.

  • Rahut, D. B., and Scharf, M. M. (2008). Rural Nonfarm Employment and Incomes in the Himalayas. Economic Development and Cultural Change, 57(1), 163-193.

  • Rahut, D. B., and Scharf, M. M. (2012). Livelihood diversification strategies in the Himalayas. The Australian Journal of Agricultural and Resource Economics, 56(4), 558- 582.

  • Reardon, T. (1997). Using Evidence of Household Income Diversification to inform study of the Rural Nonfarm Labor Market in Africa. World Development, 25(5), 735-747.

  • Reardon, T., Berdegue, J., Barrett, C. B., and Stamoulis, K. (Eds.). (2007). Household Income Diversification into Rural Nonfarm Activities Baltimore, Maryland: The International Food Policy Research Institute.

  • Rigg, J. (2006). Land, Farming, livelihood and poverty: rethinking the links in the rural South. World Development, 34(1), 180-202.

  • Saha, B., and Bahal, R. (2014). Livelihood Diversification pattern among the farmers of West Bengal. Economic Affairs, 59(3), 321-334.

  • Saha, B., and Bahal, R. (2015). Factors leading to Success in Diversified Occupations: A livelihood Analysis in India. The Journal of Agricultural Education and Extension 21(3), 249-266.

  • Sankrityayana, J. (1994). Development without Shocks: A Himalayan experience In M. P. Lama (Ed.), Sikkim: Society Polity Economy Environment. New Delhi: Indus Publishing Company.

  • Schneider, S., and Niederle, P. A. (2010). Resistance strategies and diversification of rural livelihoods: the construction of autonomy among Brazilian family farmers. The Journal of Peasant Studies, 37(2), 379-405. doi: 10.1080/03066151003595168

  • Scoones, I. (1998). Sustainable Rural Livelihoods, A framework for Analysis. IDS Working Paper, 72.

  • Smith, D. R., Gordon, A., Meadows, K., and Zwick, K. (2001). Livelihood diversification in Uganda: Patterns and determinants of Change across two rural districts. Food Policy, 26, 421-435.

  • Steward, A. (2007). Nobody Farms here anymore: Livelihood diversification in the Amazonian Community of Carvao, a historical Perspective. Agriculture and Human Values, 24, 75-92.

  • Stifel, D. (2010). The rural non-farm economy, livelihood strategies and household welfare. AFJARE, 4(1), 82-109.

  • Subba, J. R. (2008). History, Culture and Customs of Sikkim. New Delhi: Gyan Publishing House.

  • Tuyen, T. Q., Lim, S., Cameron, M. P., and Huong, V. V. (2014). Farmland loss and livelihood outcomes: A microeconometric analysis of Household Surveys in Vietnam. Journal of Asia Pacific Economy, 19(3), 423-444.

  • Vaidyanathan, A. (1986). Labour use in Rural India: A study of spatial and temporal variations. Economic and Political Weekly, XXI(52), A-130-A-146.

  • Whitehead, A. (2002). Tracking livelihood change: Theoretical, Methodological and Empirical Perspectives from North- East Ghana. Journal of Southern African Studies, 28(3), 575-598.


Abstract Views: 200

PDF Views: 1




  • Income Distribution Due to Diversified Livelihood Among Rural Households of Sikkim:An Impact Study

Abstract Views: 200  |  PDF Views: 1

Authors

Santosh Sharma
Dept. of Economics, Sikkim University, Gangtok, India
Manesh Choubey
Dept. of Economics, Sikkim University, Gangtok, India

Abstract


Income distribution in rural households throughout the world has been found through diversified form of livelihoods. A rural household has been seen as a diversified enterprise occupying diversified activities in both farm and nonfarm sectors. The extent of diversification differs among households and has differential outcome to the income distribution. Selecting 350 rural households randomly, from all four districts of Sikkim for the study purpose, this paper tries to make an inquiry of distribution of rural incomes owing to diversification of rural livelihoods. To study the problem as laid by the objective of this study, Simpson’s diversification index has been used and the extent of diversification has been measured to be 0.55. Similarly Gini coefficient has been used to calculate the inequality in income distribution and is found to be 0.378. Further decomposition of Gini inequality according to income source has been done and skilled nonfarm income as the major source of total rural income inequality has been identified. Results indicate that rural unskilled nonfarm income, self employment and business incomes have equalizing effects on total income inequality. The result indicates that despite the centrality of agriculture, rural households are engaged in other nonfarm activities for an alternative income sources.

Keywords


Rural, Sikkim, Livelihoods, Diversified, Households, Income, Gini Coefficient.

References